The anticipated unwinding of US quantitative easing and expectations of improving but unspectacular economic growth leave little room for a rebound in gold prices over the next few years, while a further decline remains a real possibility, Fitch Ratings says.
Our ratings of gold producers incorporate a base case gold price assumption of USD1,200 per troy ounce for the next two years, but a stress scenario of USD1,000/oz would put some gold miners’ ratings under significant pressure without substantial cost cutting and cash conservation measures. (Press Release)